Bitcoin’s price has dropped sharply this week, plummeting over 16% from around $76,000 to the $62,000 range. The world’s largest cryptocurrency is now trading roughly 50% below its all-time high set in October last year. The market slide has been attributed to heavy outflows from spot Bitcoin ETFs, renewed selling pressure linked to Mt. Gox, and the first Bitcoin sale by MicroStrategy since 2022.
Record-breaking UTXOs now underwater
Data from CoinGlass shows that the number of unspent Bitcoin transaction outputs (UTXOs) in loss soared above 165 million on June 2, reaching an all-time record. As BTC hovers in the low $60,000 range, coins held below their acquisition cost have hit unprecedented levels in the history of Bitcoin.
CoinGlass data confirms that as of June 2, more than 165 million Bitcoin UTXOs are in the red, setting a new record and signaling that countless outputs on the network are now below their cost basis at current prices.
A UTXO refers to an unspent transaction output, essentially Bitcoin or satoshi units that remain unmoved after landing in a wallet. Each UTXO carries the BTC price from its last transfer. If the current spot price dips below that level, the UTXO is counted as being “in loss.” Importantly, this signals only a notional paper loss; holders have not necessarily sold or realized those losses.
Glossary: A UTXO (Unspent Transaction Output) is a Bitcoin network unit that has not yet been spent. Each is tracked individually, with the price at its last movement regarded as its approximate cost basis.
However, analysts note that the sheer number of UTXOs in loss does not tell the full story. Back during the depths of the 2022 bear market, this figure was around 40 million. One big reason for today’s much higher number is the sharp increase in exchange activity and the Ordinals protocol, which have caused the total UTXO count to balloon over the past four years. In other words, part of this record comes from overall network growth rather than purely losses by holders.
Bigger picture: focus on supply in loss
For a more relevant picture of market sentiment, analysts point to a different metric—BTC supply in loss. Rather than counting outputs, this measure reflects how much actual circulating BTC is now worth less than its original cost. At present, data shows more than 9.5 million BTC are technically in the red.
Yet, this supply-in-loss figure is not historically extraordinary. Compared to the severe lows reached during the 2022 and 2019 bear markets, the current level remains well below those extremes. This suggests that most Bitcoin investors on the network have not shifted dramatically into loss territory just yet.
Key level: market eyes the $53,500 mark
Another crucial indicator is the “realized price,” presently standing near $53,500. This metric calculates the collective cost basis of all coins, using the price at their last on-chain movement. In previous downtrends, realized price often marked a cycle floor. While BTC briefly fell below it during the last two major corrections, the area later proved a strong entry point for buyers.
With Bitcoin trading around $62,000, there is about a 15% gap from the realized price. This provides some breathing room for bullish investors. However, with 165 million UTXOs currently underwater, it’s clear a significant group of holders remains sensitive to further price declines. Should another selloff occur, the $53,500 mark is seen as the main level to watch.
